STANDARD MORTGAGE TERMS
Filed By: Bridgewater Bank
Filing Date: [October 31, 2014]
Filing Number: MT140026
These STANDARD MORTGAGE TERMS shall be deemed to be included in every Mortgage which incorporates and refers to them by their filing number.
TABLE OF CONTENTS
1. DEFINITIONS/TERMS YOU NEED TO KNOW 5
2. WHAT THE MORTGAGE DOES 7
2.1 The Mortgage is Our Security On Your Property 7
2.2 What the Mortgage Secures 8
2.3 Who is Bound by the Mortgage 8
2.4 Notice of Obligations under Mortgages in Alberta 8
2.5 Changing the Mortgage – Renewals and Amendments Including Automatic Renewals 8
3. CONSTRUCTION MORTGAGE 9
3.1 Financing Improvement of Your Property 9
3.2 Progress Advance Mortgage 10
4. INTEREST 11
4.1 Interest For Fixed Rate Loans 11
4.2 Interest For Adjustable Rate Loans 11
4.3 Interest on Amounts Advanced Before the Interest Adjustment Date 12
4.4 Compound Interest 12
5. YOUR REGULAR PAYMENTS 12
5.1 Currency and Place of Payment 12
5.2 Regular Payments 12
5.3 Changing the Frequency or Date of Your Regular Payments 13
5.4 Payment of Loan Amount on Balance Due Date 13
5.5 How All Payments Must Be Made 13
5.6 How We Apply Your Payments 14
6. HOW THE MORTGAGE CAN BE PAID OFF EARLIER 14
6.1 Prepayment Privilege Without a Prepayment Charge 14
6.2 How You Can Prepay More or In Full With a Prepayment Charge 14
6.3 Prepayment Charge 14
6.4 Prepayments Generally 14
6.5 Prepayment of Renewed or Extended Mortgages 15
7. CONVERTING THE MORTGAGE 15
7.1 How You May Convert From an Adjustable Rate Loan 15
8. PORTABILITY - MOVING THE MORTGAGE TO ANOTHER PROPERTY 16
8.1 Generally 16
8.2 Conditions 16
8.3 Prepayment Charge Refund 16
8.4 Term and Interest Rate of New Mortgage 17
9. ASSUMPTION OF THE MORTGAGE IF YOUR PROPERTY IS SOLD 17
10. YOUR PROMISES AND OBLIGATIONS 18
10.1 Payments 18
10.2 Your Property and the Mortgage 18
10.3 Properties Which You Lease From Others 18
10.4 No Other Mortgages Without Consent 20
10.5 Owner-Occupied Properties 20
10.6 Rental Properties 20
10.7 Property Taxes 21
10.8 Insurance 22
10.9 Repairs 24
10.10 Demolitions and Alterations 24
10.11 Environmental 25
10.12 Property Inspection, Testing and Investigation 26
10.13 Illegal Activities 26
10.14 Administration and Processing Fees 27
10.15 New Home Warranties 28
10.16 Assumption of Mortgage 28
10.17 Expropriation 28
10.18 Spousal Information 28
10.19 Withholding Taxes 28
11. OUR RIGHTS AND REMEDIES 29
11.1 No Obligation to Make Advances Under the Mortgage 29
11.2 Releasing Your Property From the Mortgage 29
11.3 Certain Actions We Can Take 29
11.4 Default and Acceleration of the Loan Amount 30
11.5 Enforcing Our Rights 31
11.6 Doctrine of Consolidation 34
12. IF YOUR PROPERTY IS A CONDOMINIUM UNIT OR STRATA LOT 34
13. GUARANTORS 35
14. DISCHARGE 36
15. MISCELLANEOUS 37
15.1 Date of Mortgage 37
15.2 Exclusion of Statutory Covenants 37
15.3 National Housing Act 37
15.4 Part of Mortgage Invalid 37
15.5 Headings 37
15.6 Governing Law 37
15.7 Time of the Essence 37
15.8 Important Notice for Mortgages in Manitoba 37
15.9 Land Titles Act (Alberta) Mortgage Charge Clause 38
15.10 Saskatchewan Specific Clauses 38
15.11 British Columbia Clause 39
1. DEFINITIONS/TERMS YOU NEED TO KNOW
The following are used with particular meanings in this set of mortgage terms:
(a) agreement means, collectively, the mortgage commitment, advance schedule and any other agreement we make with you or document we issue to you relating to the making of the mortgage and all present and future supplements, amendments and replacements to that document or agreement.
(b) balance due date means the date set out in the registered mortgage or in an amending agreement on which the loan amount is payable in full and may also be referred to as the maturity date.
(c) business day means any day other than a Saturday or Sunday and any day which is a statutory or bank holiday in the province or territory in which your property is situated.
(d) CMHC means Canada Mortgage and Housing Corporation.
(e) guarantor means each person who signs the mortgage or an agreement relating to the mortgage as a guarantor, surety or covenantor.
(f) hazardous substance means any substance or condition that is prohibited, controlled or regulated or is otherwise hazardous in fact such as contaminants, pollutants, toxic, dangerous or hazardous substances, toxic, dangerous or hazardous materials, designated substances, controlled products, including without limitation, wastes, subject wastes, urea formaldehyde foam type of insulation, asbestos, or asbestos-containing materials, polychlorinated biphenyls (PCBs) or PCB contaminated fluids or equipment, explosives, radioactive substances, petroleum and associated products, underground storage tanks or surface impoundments.
(g) improvement means any construction or installation on your property or any alteration, addition or repair to any building or structure on your property.
(h) interest adjustment date is the date identified as the interest adjustment date in the registered mortgage.
(i) legal costs means all legal fees and disbursements as between a solicitor and his own client on a full indemnity basis.
(j) interest rate is the interest rate identified as the interest rate in the registered mortgage.
(k) loan amount means the amount of money you owe us at any given time under this mortgage. The loan amount may include, but is not limited to, unpaid principal, interest on unpaid principal, defaulted payments, interest on defaulted payments, other charges and interest on other charges. Other charges may include our administration and processing fees and the expenses of enforcing our rights granted by the mortgage as well as paying off any prior encumbrances, claims or charges against your property, should we in our discretion do so.
(l) mortgage means, collectively, the registered mortgage, any schedules that are attached to the registered mortgage, this set of standard charge mortgage terms, and any supplements, amendments, replacements or renewals from time to time.
(m) mortgage commitment means the commitment letter, loan approval or other document we issue to you or to someone on your behalf pursuant to which this mortgage is made and all supplements, amendments and replacements to that letter, approval or other document from time to time.
(n) mortgage insurer means CMHC, Genworth Financial Insurance Company Canada or any other company or institution that insures the payment of mortgages to mortgage lenders.
(o) prime rate means the annual rate of interest which Bridgewater Bank establishes from time to time as the reference rate of interest that determines interest rates it will charge its customerson any given day for adjustable and variable rate loans in Canada.
(p) principal amount is the amount of money identified as the principal amount on the registered mortgage.
(q) progress advance period means, with regard to a mortgage that is to be advanced by way of one or more progress advances, the time provided in the agreement for the completion of the progress draws as may be increased or otherwise adjusted by us, in our discretion, for actual completion of all or any part of the improvement. The parties also agree that notwithstanding that this mortgage may be reduced and re-advances made, this mortgage secures all sums ultimately due and owing by you to us in respect of any loan, including any re-advancement of principal moneys made by us to you at any time.
(r) registered mortgage means the form of charge or mortgage which references this set of standard charge mortgage terms by its filing number and which you sign and is the part of the mortgage that is or will be registered against the title to your property or, where your property is under the electronic registration system, will be signed and registered electronically against title to your property, and all supplements, amendments, replacements and renewals from time to time.
(s) requirements of environmental law means all requirements of the common law or of statutes, regulations, by-laws, ordinances, treaties, judgments and decrees, and (whether or not they have the force of law), rules, policies, guidelines, orders, approvals, notices, permits, directives, of any federal, provincial, territorial, regional, municipal or local judicial, regulatory or administrative agency, board or governmental authority relating to environmental or occupational health and safety matters and your property and the activities carried out on your property (whether in the past, present or future) including, but not limited to, all such requirements relating to: (i) the protection, preservation or remediation of the natural environment (the air, land, surface water or groundwater); (ii) the generation, handling, treatment, storage, transportation or disposal of or other dealing with solid, gaseous or liquid waste; and hazardous substances.
(t) standard charge mortgage terms means the set of standard mortgage terms, standard charge terms or optional covenants incorporated into the registered mortgage by reference to their filing number or the set of additional mortgage terms appended to the registered mortgage.
(u) taxes means, collectively, all taxes, assessments and levies of any kind relating to your property and includes any interest and penalties. Taxes include, but are not limited to, property taxes, local improvement assessments, school taxes and development charges. Taxes may also include penalties, costs, charges or expenses associated with a cleanup following a fire, explosion, hazardous substance spill or other destruction or damage.
(v) term means a time period commencing on the interest adjustment date and ending on the balance due date set out in the mortgage or in a renewal or in an amendment of the mortgage.
(w) we, us, and our mean the mortgagee or chargee described in the registered mortgage.
(x) you and your mean each person, corporation and other entity who has signed the mortgage as a chargor, mortgagor or borrower, including the personal and legal representatives of each person, corporation and other entity.
(y) your property means the land described on the registered mortgage and all present and future buildings, structures and improvements on the land. It also includes any improvements, substitutions, additions or alterations made to any building or structure on the land. If your property is a condominium unit or strata lot, your property includes your interest in the common property or common elements and any other interest that you may have in the assets of the condominium corporation or strata corporation. Any references to "your property" means all or any part of your property.
2. WHAT THE MORTGAGE DOES
2.1 The Mortgage is Our Security On Your Property
(a) By signing the registered mortgage, you mortgage and charge all of your right, title and interest in and to your property to us. If you are a tenant or a lessee of your property, you charge and sublease your entire leasehold interest in your property to us for the entire term of the lease except the last day of the term, including any renewals and any option or right of first refusal to purchase.
(b) In return, we make a loan to you for the principal amount, or any part of the principal amount as is advanced to you from time to time. Your interest in your property is security to us for repayment of the loan amount and your performance of all your obligations under the mortgage.
2.2 What the Mortgage Secures
(a) If you have repaid part of the principal amount by regular payments or prepayments, we may, but have no obligation to, allow you to borrow additional amounts up to a maximum of the difference between the loan amount and the principal amount. You must meet our then current lending requirements. All additional amounts borrowed are secured by the mortgage in the same priority and bear interest at the interest rate of the mortgage in effect at that time.
(b) Our mortgage and charge of your property ends when you have repaid the loan amount in full, met all of your other obligations under the mortgage, and the mortgage commitment is terminated.
2.3 Who is Bound by the Mortgage
(a) The obligations under the mortgage are the responsibility of each person, corporation and other entity who signed it. Even if other persons, corporations or other entities have also signed the mortgage, each borrower and guarantor is responsible for meeting all obligations in the mortgage and paying the entire loan amount.
(b) Your legal and personal representatives and anyone else to whom your property is transferred must also meet and comply with the obligations in the mortgage.
(c) Our successors and anyone to whom we transfer the mortgage are also bound by the mortgage.
2.4 Notice of Obligations under Mortgages in Alberta
If the mortgage is a high-ratio mortgage on a property located in Alberta with insurance by a mortgage insurer, the following applies:
This mortgage is a high-ratio mortgage to which sections 43(4.1) and (4.2) and 44(4.1) and (4.2) of the Law of Property Act (Alberta) apply. You and anyone who, expressly or impliedly, assumes this mortgage from you, could be sued for any obligations under this mortgage if there is a default by you or by a person who assumes this mortgage.
2.5 Changing the Mortgage – Renewals and Amendments Including Automatic Renewals
(a) We may, at our option and by agreement with you in writing, change any part of the mortgage. This change could include renewing the mortgage.
(b) The mortgage may also be automatically renewed where, before the balance due date, we send to you a notice offering to renew the outstanding loan amount at certain rates and terms and you do not respond in writing accepting one of the renewal terms offered, or you do not pay the loan amount in full or you have not made other arrangements for payment or extension with us on or before the balance due date. In that circumstance, you agree the mortgage will be renewed for the term and at the rate for automatic renewal we set out in the renewal notice we send you.
(c) We do not have to register any such written renewal agreement with you on the title to your property to retain our rights under the mortgage against you or any other person including our priority over any other mortgage.
(d) If we make a new agreement with another borrower or person who is obligated to pay the loan amount, you will not be released from your obligations under the mortgage, even if you do not sign or are not advised of the new agreement.